Costly inputs, weak prices tale of H1

As September draws to a close, cement makers in India may end the first-half of the current financial year (H1FY25) with higher than expected raw material costs, amid weak pricing, industry experts and analysts suggest.

- AMRITHA Pll.l.AY

Cement makers continue to focus on reducing power and fuel costs as expenses on raw materials such as limestone, fly-ash and others remain elevated. Meanwhile, attempts to increase prices have largely failed to hold.

“While raw material costs were anticipated to remain range-bound at the beginning of the financial year, with fly-ash and slag prices trending downwards, this trend did not sustain as costs continued to remain elevated in the first quarter (Q1FY25). Furthermore, higher limestone costs due to premium bids at auctions and increased inward freight prices are expected to drive raw material costs up by 5-7 per cent in the current financial year,” said Sehul Bhatt, director-research at CRISIL Market Intelligence and Analytics.